Segment Information | SEGMENT INFORMATION: CNX consists of two principal business divisions: Exploration and Production (E&P) and Midstream. The principal activity of the E&P Division, which includes four reportable segments, is to produce pipeline quality natural gas for sale primarily to gas wholesalers. The E&P Division's reportable segments are Marcellus Shale, Utica Shale, Coalbed Methane, and Other Gas. The Other Gas Segment is primarily related to shallow oil and gas production which is not significant to the Company due to the sale of substantially all of CNX's shallow oil and gas assets in the 2018 period (See Note 5 - Acquisitions and Dispositions for more information). It also includes the Company's purchased gas activities, unrealized gain or loss on commodity derivative instruments, exploration and production related other costs, as well as various other operating activities assigned to the E&P Division but not allocated to each individual segment. CNX's Midstream Division's principal activity is the ownership, operation, development and acquisition of natural gas gathering and other midstream energy assets of CNX Gathering and CNXM, which provide natural gas gathering services for the Company's produced gas, as well as for other independent third-parties in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. Excluded from the Midstream Division are the gathering assets and operations of CNX that have not been contributed to CNX Gathering and CNXM. As a result of the Midstream Acquisition (See Note 5 - Acquisitions and Dispositions for more information), CNX owns and controls 100% of CNX Gathering, making CNXM a single-sponsor master limited partnership and thus the Company began consolidating CNXM on January 3, 2018. The Company's unallocated expenses include other expense, gain on asset sales related to non-core assets, gain on previously held equity interest, loss on debt extinguishment, impairment of other intangible assets and income taxes. In the preparation of the following information, intersegment sales have been recorded at amounts approximating market prices. Operating profit for each segment is based on sales less identifiable operating and non-operating expenses. Assets are reflected at the division level for E&P and are not allocated between each individual E&P segment. These assets are not allocated to each individual segment due to the diverse asset base controlled by CNX, whereby each individual asset may service more than one segment within the division. An allocation of such asset base would not be meaningful or representative on a segment by segment basis. Industry segment results for the three months ended September 30, 2019 : Marcellus Shale Utica Shale Coalbed Methane Other Gas Total E&P Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 179,142 $ 50,042 $ 35,621 $ 246 $ 265,051 $ — $ — $ — $ 265,051 (A) Purchased Gas Revenue — — — 29,192 29,192 — — — 29,192 Midstream Revenue — — — — — 74,261 — (55,736 ) 18,525 Gain on Commodity Derivative Instruments 38,354 12,628 6,036 156,895 213,913 — — — 213,913 Other Operating Income — — — 3,375 3,375 — — (59 ) 3,316 (B) Total Revenue and Other Operating Income $ 217,496 $ 62,670 $ 41,657 $ 189,708 $ 511,531 $ 74,261 $ — $ (55,795 ) $ 529,997 Earnings Before Income Tax $ 41,014 $ 18,220 $ 8,717 $ 83,279 $ 151,230 $ 41,741 $ (109 ) $ — $ 192,862 Segment Assets $ 7,087,782 $ 2,178,073 $ 16,668 $ 3,735 $ 9,286,258 (C) Depreciation, Depletion and Amortization $ 111,839 $ 8,620 $ — $ — $ 120,459 Capital Expenditures $ 267,689 $ 68,448 $ — $ — $ 336,137 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $39,092 to Direct Energy Business Marketing LLC, which comprises over 10% of revenue from contracts with external customers for the period. (B) Includes equity in earnings of unconsolidated affiliates of $673 for Total E&P. (C) Includes investments in unconsolidated equity affiliates of $17,110 for Total E&P. Industry segment results for the three months ended September 30, 2018 : Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 207,407 $ 88,039 $ 48,471 $ 795 $ 344,712 $ — $ — $ — $ 344,712 (D) Purchased Gas Revenue — — — 10,560 10,560 — — — 10,560 Midstream Revenue — — — — — 61,372 — (41,426 ) 19,946 Gain (Loss) on Commodity Derivative Instruments 1,796 (151 ) 605 15,755 18,005 — — — 18,005 Other Operating Income — — — 3,969 3,969 — — (66 ) 3,903 (E) Total Revenue and Other Operating Income $ 209,203 $ 87,888 $ 49,076 $ 31,079 $ 377,246 $ 61,372 $ — $ (41,492 ) $ 397,126 Earnings (Loss) Before Income Tax $ 64,408 $ 41,237 $ 9,642 $ (60,856 ) $ 54,431 $ 31,173 $ 117,830 $ — $ 203,434 Segment Assets $ 6,256,132 $ 1,883,134 $ 82,696 $ (12,926 ) $ 8,209,036 (F) Depreciation, Depletion and Amortization $ 111,844 $ 7,741 $ — $ — $ 119,585 Capital Expenditures $ 253,263 $ 44,202 $ — $ — $ 297,465 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $42,901 to NJR Energy Services Company, which comprises over 10% of revenue from contracts with external customers for the period. (E) Includes equity in earnings of unconsolidated affiliates of $1,241 for Total E&P. (F) Includes investments in unconsolidated equity affiliates of $19,488 for Total E&P. Industry segment results for the nine months ended September 30, 2019 : Marcellus Shale Utica Shale Coalbed Methane Other Gas Total E&P Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 709,656 $ 208,206 $ 125,094 $ 906 $ 1,043,862 $ — $ — $ — $ 1,043,862 (A) Purchased Gas Revenue — — — 64,181 64,181 — — — 64,181 Midstream Revenue — — — — — 225,280 — (169,417 ) 55,863 Gain on Commodity Derivative Instruments 17,727 5,774 2,819 213,798 240,118 — — — 240,118 Other Operating Income — — — 9,671 9,671 — — (235 ) 9,436 (B) Total Revenue and Other Operating Income $ 727,383 $ 213,980 $ 127,913 $ 288,556 $ 1,357,832 $ 225,280 $ — $ (169,652 ) $ 1,413,460 Earnings (Loss) Before Income Tax $ 178,326 $ 68,165 $ 29,219 $ (42,650 ) $ 233,060 $ 118,739 $ (1,662 ) $ — $ 350,137 Segment Assets $ 7,087,782 $ 2,178,073 $ 16,668 $ 3,735 $ 9,286,258 (C) Depreciation, Depletion and Amortization $ 349,620 $ 24,999 $ — $ — $ 374,619 Capital Expenditures $ 716,164 $ 248,338 $ — $ — $ 964,502 (A) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $155,337 to Direct Energy Business Marketing LLC and $114,440 to NJR Energy Services Company, each of which comprise over 10% of revenue from contracts with external customers for the period. (B) Includes equity in earnings of unconsolidated affiliates of $1,703 for Total E&P. (C) Includes investments in unconsolidated equity affiliates of $17,110 for Total E&P. Industry segment results for the nine months ended September 30, 2018 : Marcellus Utica Shale Coalbed Methane Other Total Midstream Unallocated Intercompany Eliminations Consolidated Natural Gas, NGLs and Oil Revenue $ 590,728 $ 326,119 $ 152,854 $ 15,150 $ 1,084,851 $ — $ — $ — $ 1,084,851 (D) Purchased Gas Revenue — — — 38,546 38,546 — — — 38,546 Midstream Revenue — — — — — 186,875 — (117,191 ) 69,684 Gain on Commodity Derivative Instruments 1,411 746 330 76,265 78,752 — — — 78,752 Other Operating Income — — — 23,355 23,355 — — (209 ) 23,146 (E) Total Revenue and Other Operating Income $ 592,139 $ 326,865 $ 153,184 $ 153,316 $ 1,225,504 $ 186,875 $ — $ (117,400 ) $ 1,294,979 Earnings (Loss) Before Income Tax $ 155,923 $ 143,830 $ 35,164 $ (138,551 ) $ 196,366 $ 94,502 $ 702,097 $ — $ 992,965 Segment Assets $ 6,256,132 $ 1,883,134 $ 82,696 $ (12,926 ) $ 8,209,036 (F) Depreciation, Depletion and Amortization $ 338,834 $ 24,504 $ — $ — $ 363,338 Capital Expenditures $ 708,660 $ 85,464 $ — $ — $ 794,124 (D) Included in Total Natural Gas, NGLs and Oil Revenue are sales of $158,746 to NJR Energy Services Company, which comprises over 10% of revenue from contracts with external customers for the period. (E) Includes equity in earnings of unconsolidated affiliates of $4,688 for Total E&P. (F) Includes investments in unconsolidated equity affiliates of $19,488 for Total E&P. Reconciliation of Segment Information to Consolidated Amounts: Revenue and Other Operating Income For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Total Segment Revenue from Contracts with External Customers $ 312,768 $ 375,218 $ 1,163,906 $ 1,193,081 Gain on Commodity Derivative Instruments 213,913 18,005 240,118 78,752 Other Operating Income 3,316 3,903 9,436 23,146 Total Consolidated Revenue and Other Operating Income $ 529,997 $ 397,126 $ 1,413,460 $ 1,294,979 Earnings Before Income Tax: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Segment Income Before Income Taxes for Reportable Business Segments: Total E&P $ 151,230 $ 54,431 $ 233,060 $ 196,366 Midstream 41,741 31,173 118,739 94,502 Total Segment Income Before Income Taxes for Reportable Business Segments $ 192,971 $ 85,604 $ 351,799 $ 290,868 Unallocated Expenses: Other (Expense) Income (3,109 ) (1,105 ) (1,578 ) 4,811 Gain on Certain Asset Sales 3,000 134,320 7,530 146,706 Gain on Previously Held Equity Interest — — — 623,663 Loss on Debt Extinguishment — (15,385 ) (7,614 ) (54,433 ) Impairment of Other Intangible Assets — — — (18,650 ) Earnings Before Income Tax $ 192,862 $ 203,434 $ 350,137 $ 992,965 Total Assets: September 30, 2019 2018 Segment Assets for Total Reportable Business Segments: E&P $ 7,087,782 $ 6,256,132 Midstream 2,178,073 1,883,134 Intercompany Eliminations 3,735 (12,926 ) Items Excluded from Segment Assets: Cash and Cash Equivalents 5,484 42,672 Recoverable Income Taxes 11,184 40,024 Total Consolidated Assets $ 9,286,258 $ 8,209,036 |